Ardstone, the Irish property investor and developer, has acquired a zoned site in Dublin capable of delivering 1,400 homes as the group closes in on Ires Reit as the largest private residential landlord.
The company, backed mainly by large European pension and insurance groups, has paid about €25 million for the almost 20-acre (8 hectare) site in Clondalkin.
Ardstone is also eyeing the development of a community centre and town plaza on the site, with the aim of beginning construction in 2027, subject to planning permission.
The company was set up in 2005 by former Friends First property heads Donal Mulcahy, Ciarán Burns and Donal O’Neill and initially focused on European real estate markets. Since 2021 it has rolled out a long-term residential investment strategy, focused on the mid-level Irish rental market, and it now manages more than 3,000 residential units here valued at about €1.4 billion.
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The Ireland Strategic Investment Fund (Isif) has invested more than €100 million in the company.
Ardstone plans to commence development on its existing land pipeline of 1,000 units in 2026. This could see it surpass Dublin-listed Ires Reit, which had 3,652 units as of the end of June, as the largest private residential landlord in the Republic.
Mr Mulcahy retired from the business two years ago. Mr O’Neill is chief executive and Mr Burns chief financial officer.
Ardstone has been the most active acquirer of apartment complexes in the State in 2025, as the private residential sector (PRS) shows signs of a tentative recovery as a result of a decline in borrowing costs, clarity on the future of rent caps, and Government efforts to reduce the cost of apartment construction.
State-backed entities such as the Land Development Authority and Approved Housing Bodies had replaced PRS as the most active players in the market in recent years.
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Ardstone completed 800 social and affordable units this year in Tallaght and Citywest, both in southwest Dublin.
It also acquired an apartment complex at Spencer Place in the north Dublin docklands, comprising 360 units across two blocks, for €177 million, and 180 apartments in Santry, Dublin 9, for €79 million.
“We intend on increasing that scale and pace in the coming years with the continued support of our capital partners, and this site will play an important part in sustaining our pipeline,” said Mr O’Neill.
Sherry FitzGerald reported last month that spending on residential investment properties in the State hit the highest quarterly levels in two-and-a-half years in the third quarter, driven by the two large Ardstone purchases.
The report noted that spending on residential property was supported by the “low interest rate environment”, and changes to the private lettings sector.
The European Central Bank cut its main rate from 4 per cent to 2 per cent in the 13 months to last June.
[ Investment in residential property rises 20% above average to hit 2½-year highOpens in new window ]
A new nationwide control system – set to fully kick in from March 2026 – will see rent increases for tenancies capped in most cases by inflation or a maximum cap of 2 per cent, along the lines of an existing regime for so-called rent pressure zones.
However, landlords will be able to reset rents at the going market rate when a tenant leaves. Meanwhile, rent increases at new apartments and student accommodation, where construction commenced from June 10th last, is now linked only to inflation.
The Government has also introduced other initiatives this year to boost apartment construction. It decided in Budget 2026 to cut the VAT rate on the sale of completed apartments to 9 per cent from 13.5 per cent, and to introduce enhanced corporation tax deductions for certain apartment construction projects.
It followed new apartment construction guidelines unveiled during the summer, including an increase in the number of studio apartments developers could include in a project and a reduction in the minimum permitted size of apartments. The guidelines are currently the subject of a legal challenge.
